Hawaii Real Estate State Practice Exam

If a deed states "Reservation in favor of the state of Hawaii of all mineral and metallic mines," what claim does Hildo have to the gold found on his property?

1. A right to half of the gold

2. No claim to the gold

3. Full ownership of the gold

4. A claim requiring payment to the state

The correct answer is: No claim to the gold

The appropriate interpretation of the deed that states "Reservation in favor of the state of Hawaii of all mineral and metallic mines" indicates that the state reserves the rights to all minerals and metallic resources found on the property, including gold. This means that Hildo does not have ownership rights to any of the mineral resources underneath his property, as those rights have been explicitly retained by the state. In property law, when a deed includes a reservation like this, it signifies that the property owner—the individual in this case—does not own those specific rights, despite potentially owning the surface rights to the land. As a result, Hildo would have no legal claim to any gold found on his property, as the reservation grants the state exclusive rights over those mineral resources. This concept is crucial in understanding property ownership rights in Hawaii and is consistent with how reservations are typically treated in land deeds.